Question - Can you explain the most recent drilling program to me?

Answer - The drilling program began on Monday, February 11, 2008 and lasted three days. Under the supervision of XCG Consultants Ltd., a drilling rig with an eight inch auger was used to bore holes into the McAdoo landfill site. Due to the slope of the site, platforms were pre-built to stabilize the drilling rig. At the request of the City of Kingston, we agreed to only drill when the landfill was in a frozen state. The temperature during our drill program was minus seventeen degrees Celsius (-17C). We were very surprised that the first drill hole to locate the nylon was at a very shallow depth - only 5 feet below the surface. Additional drill holes located solid nylon from a depth of 5 feet all the way down to 35 feet. In some instances the nylon was so thick that the auger became too entangled in the nylon to bore any deeper than 15 feet. The area of this nylon deposit spans 120 metres (390 feet). Overall, the results of the drilling program have proven to be extremely positive.

Question - Do you know if the nylon that was discovered at the McAdoo site is of commercial value?

Answer -We know that both the McKendry and McAdoo landfill sites received nylon from the same source - DuPont during the 1960's and 1970's. We conducted an analysis of the McKendry nylon in 2007 from a polymer testing facility in Ontario. The McKendry nylon was found to be Nylon Type 6/6 and of commercial value. We are current sending samples of the McAdoo nylon to this same polymer testing facility for an analysis.

Question – What is the difference between the McKendry and McAdoo Landfill Sites?

Answer - Although the McKendry and McAdoo landfill sites are close to one another (3 kms), the McKendry site is at a much lower elevation and is located in a flat bog area that contains a very dense clay base. The clay stuck to the nylon, making the cleaning very labour intensive and costly, even at the preliminary stage. The McAdoo site is located at a higher elevation and is beside a former quarry. The material mixed in with the nylon at McAdoo to very granular which will be much easier to remove than the dense clay at McKendry.

Question - What is the current market price for Nylon Type 6/6?

Answer - Global Recycling Network is an electronic information exchange that specializes in the trade of recyclables reclaimed in Municipal Solid Waste (MSW) streams, as well as the marketing of eco-friendly products. The spot market price for Nylon Type 6/6 has remained very stable during the last year. It is now starting to increase in value. Clean Scrap Nylon 6/6 has a current spot price of $.77 US per pound. Reground Nylon Type 6/6 has a spot price of $.99 US per pound while pelletized or Repro Nylon Type 6/6 has a current spot price of $1.24 US per pound.

Question - What form would you sell the nylon in?

Answer - The Company fully realises the financial benefit of selling the nylon in a more processed or value added form - Reground and Repro vs. the Scrap form. We are currently negotiating with several major nylon processing plants to ensure that we can maximize our profit.

Question - The drilling program at McAdoo was very positive, so when will the Company obtain a contract with the City of Kingston to excavate and sell this nylon?

Answer - The fact that the McAdoo results were so positive allows the Company to now move forward with the feasibility stage of the program. Once the City of Kingston approves of our feasibility study, the McAdoo landfill will be mined for its nylon. The City will benefit from the expected negotiated royalties that will be generated to them from the reclaimed nylon. The City of Kingston and the Company are both looking at the financial benefits of the McAdoo project.

Question - Can you explain the Company's stock option plan?

Answer - Options are financial instruments that convey the right, but not the obligation, to engage in a future transaction on some underlying security. Buying an option provides the right to buy a specified quantity of a security at a set strike price at some time on or before expiration, which is 5 years for our options. Our employee stock options are awarded by Poly Pacific to our employees as a form of incentive compensation. Usually options have a four months hold period, which means after four months the options can be purchased and sold if wanted or kept.
Options provide the company with an additional source of revenue, whereby the exercising of the options brings in more revenue to the company vs. having to go out for private placements, which are usually priced at a discount to the market.

Question - Why did the Company amend some of the stock options from $.32 to $.12?

Answer - The company's decision to amend or lower some of the stock options was largely to due with the current share price being well below $.32.The decision to amend the stock options was to reward the management and board members for their hard work and dedication to the future of the Company. One member of the Company's Board of Directors, Mr. Greg Pendura, actually had his options reduced from 1,000,000 at $.32 to 500,000 at $.12.

Question - Given the positive findings at McAdoo, why was the most recent private placement only at $.08?

Answer - The current share price at the time determines what the price of a private placement will be. The costs associated with the professionals that have been hired to assess the McAdoo site can be very taxing on the Company. To date, the Company has spent over $300,000 for the McAdoo assessment.We feel the results of our findings at McAdoo have made this expenditure very worth while for the Company and its shareholders.

Question - Does the Company not expect the share price to ever go over $.32?

Answer - While the company has no control over the market price of the shares, we fully anticipate that the share price will increase well beyond its current level, given the opportunities that are ahead for the Company. Amending the stock option price allows the company to obtain additional working capital to pursue these opportunities by the exercising of options VS. private placements.

Question - Poly-Pacific originally stated that the feasibility study for the McAdoo Landfill would be completed by December 2007, why the delay?

Answer - The assessment phase of the McAdoo Landfill began in mid August 2007. The four stages of this investigation involved 1. a site survey, 2. a geophysical survey, 3.open pit testing, and 4. drilling. We were hopefull that we might be able to obtain a feasibility study by just completing the first three stages of the investigation. We now realize that drilling must be completed to provide an accurate assessment. The City of Kingston rightly decided that drilling can only take place on frozen ground. As such, the City of Kingston granted Poly-Pacific an extension to the access agreement to allow this stage to take place. Weather permitting, we expect to begin the drilling program in the early part of 2008, with the feasibility study to follow.

Question - what has the initial assessment of the McAdoo Landfill determined?

Throughout the period of the assessment our Director of Engineering, Angus Ross, M. Sc., P. Eng. and XCG Consultants, and engineering firm in Kingston, Ontario met with many individuals associated with the McAdoo landfill to obtain as much history as to where the nylon was buried on this 10 acre site during the 1960's and early 1970's. Unfortunately, there were no offical records kept for the McAdoo Landfill with respect to the amount of nylon deposited. We are much more knowledgeable now than when we began. We know from talking with both the former employee's of the site and former employee's of the manufacturer of the nylon that there is definately a significant amount of nylon in McAdoo.

Question - how do you know that the nylon in McAdoo will be of a commercial value?

Answer - Our investigation has determined that once the McAdoo Landfill was closed to taking any more nylon, that this same material was then deposited on a nearby private piece of property - the McKendry Site. This site has been largely excavated of it's nylon. We have conducted an analysis from a large sample of the McKendry nylon and determined it to be a commercial grade of Nylon Type 66, which is a highly desireable commodity.

Question - Why was the nylon deposited in landfill sites during the 1950's though 1970's?

Answer - The machines which produced nylon during this era where not made to be shut off. Doing so required a very lenghy process of shut down and start up. It was simply more economical to keep the machines running and producing nylon than turing them off. Nylon is a much more desireable product now than it was 40 years ago. Today's machinery are engineered to recycle any excess or off spec nylon back into production.

Question -Is there a large market for recycled nylon?

Answer - The market for commerical grade Nylon 66 is huge. Currently, due to worldwide shortages of nylon and price increases relating to petroleum, from which nylon is based, the demand for recycled nylon is staggering. No where is this more evident than in Asia, who are enjoying an economic and industrial boom.

Question - Is Poly-Pacific going to base it's future on the McAdoo Landfill?

Answer - Management at Poly-Pacific have long stated that McAdoo will only be a proving ground from which the company will grow with the additional opportunities in this industry . We are currently in various stages of negotiations with many other nylon sites throughout North America and the world, which would dwarf the McAdoo Site.